No loan, no lease: Going solar via home equity agreement

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California-based evNation announced it has partnered with QuantmRE to provide a debt-free financing option for homeowners looking to install solar or electric vehicle charging stations.

The two partnered to offer home equity agreements for rooftop solar and EV charging. While loans, leases, second mortgages, and home equity lines of credit (HELOCs) often have credit score requirements and require the customer to take on debt, the home equity agreement does not.

Under the agreement, the homeowner is provided with a lump sum in exchange for a share of the future value of the property. These funds can then be used to install rooftop solar arrays and home electric vehicle charging stations.

The product opens the door for customers who may not qualify for traditional loans or leases and are suited for homeowners who have accrued equity in their home and do not have cash on hand. Typically this type of financing has a 10 year term, though terms can be as long as 30 years.

“QuantmRE’s Home Equity Agreements are a much-needed alternative financing option than can be an ideal solution for many of our customers,” said Neil Okun, co-founder, evNation. “We look forward to joining forces on a shared vision to bring evNation’s range of EV charging and solar installations to a wider range of homeowners without the cost and burden of them having to take out another loan, and with all the cost-savings that QuantmRE’s debt-free financing solution brings.”

Often in a home equity agreement, at the conclusion of the agreement term, the homeowner pays back the equity advance the company paid, as well as a percentage of any appreciation in property value.

“This can amount to a significant payment — in some cases, more than double or even triple the amount of the original loan,” said NerdWallet.

However, the financing option offers a way to cut down on monthly costs without paying cash up front.

“For borrowers who have a lot of debt or limited cash reserves that couldn’t cover a consistent loan payment, this can be a way to access their wealth immediately without having to pay it back for several years,” said NerdWallet.

If the home’s value does not go up or if it goes down, the company will take an adjusted share of the sale price, which can be less than what was received upfront. However, the homeowner will also be working with a smaller reserve from the home sale to pay the company back.

evNation offers its customers traditional financing methods for solar and EV charging, as well, and installs for both residential and commercial accounts. The company also forms partnerships with automotive dealers, training employees in offering EV charging solutions and providing concierge services to EV purchasers.

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